,,ii  #aai? ,,congress  #b;d ,session   
,s4 #cggd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,febru>y #d1 #bjbf,mr4 
,gallego 7= himself & ,mr4 ,mor5o7      
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,comm]ce1 ,sci5ce1 & ,transportation  ,a
 ,,bill  ,to prohibit onl9e plat=ms f   
display+ fraudul5t or deceptive         
comm]cial adv]tisem5ts1 & = o!r         
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,safegu>d+ ,consum]s f     
,adv]tis+ ,misconduct ,act or ! ,,scam  
,act4  #b4 ,f9d+s ,congress f9ds !      
foll[+3 7#a7 ,onl9e plat=ms h become a  
prim>y conduit = onl9e scams or o!r     
digital adv]tis+-relat$ fraud1 includ+  
fake giveaways1 animal sales1 deal      
adv]tisem5ts ti$ to nonexi/5t products1 
gov]nm5t imp]sonations1 romance scams1  
heal? scams1 & imp]sonations us+        
,,ai-clon$ voices & /ol5 images t>get+  
legitimate bus9esses4  7#b7 ,accord+ to 
data report$ by ! ,f$]al ,trade         
,commission1 social m$ia plat=ms are a  

prim>y contact me?od to initiate scams1 
) individuals ages #bj to #bi report+   
social m$ia 0 ! contact me?od m ?an #ch 
p]c5t ( ! "t1 & = individuals ages #ah  
to #ai1 t figure 0 #dg p]c5t4  7#c7     
,accord+ to ! ,commission1 ! e/imat$    
ov]all loss f fraud 9 #bjbd1 adju/$ to  
acc\nt = und]report+1 0                 
#aie1ijj1jjj1jjj1 ) an e/imat$          
#ha1ejj1jjj1jjj lo/ by old] adults4     
7#d7 ,accord+ to ! ,,a>p1 consum]s fil$ 
#b1fjj1jjj fraud reports 9 #bjbc1 ) a   
m$ian individual loss ( #ejj4 ,ne>ly    
#ajj1jjj consum]s report$ losses (      
#aj1jjj or m4  7#e7 ,"s onl9e plat=ms h 
ab&on$ tight] adv]tis] v]ification      
processes to avoid driv+ away pr(its f  
adv]tis]s4  7#f7 ,section #bcj ( !      
,communications ,act ( #aicd 7#dg       
,u4,s4,c4 #bcj7 0 enact$ to protect     
onl9e plat=ms act+ z ,good ,sam>itans by
 %ield+ su* plat=ms f be+ treat$ z      
publi%]s ( us] cont5t1 :ile enc\rag+ su*
 plat=ms to block or scre5 (f5sive      
cont5t4  7#g7 ,c\rts h int]pret$        

,section #bcj too broadly1 grant+ sweep+
 immunity ev5 to onl9e plat=ms alleg$ to
 facilitate unlawful or h>mful activity 
& includ+ onl9e activities t did n exi/ 
9 #aiif--;an outcome contr>y to         
,congress's orig9al int5t4  7#h7        
,accord+ to ! ,f$]al ,trade             
,commission's consum] al]t titl$ ,top   
scams ( #bjbd 7,m>* #aj1 #bjbe71 ,p     
report$ los+ money m (t5 :5 contact$    
?r\gh social m$ia4 ,mo/ p 7#gj p]c5t7   
report$ a loss :5 contact$ on a social  
m$ia plat=m--& lo/ m money ov]all4 ,!   
,commission issu$ broad in=mation       
reque/s to onl9e plat=ms us+ !          
,commission's au?ority "u section #f7;b7
 ( ! ,f$]al ,trade ,commission ,act 7#ae
 ,u4,s4,c4 #df7;b77 9 ord] to assess    
paid adv]tisem5t scre5+ practices1 cit+ 
! surge 9 scam ads4  7#i7 ,onl9e        
plat=ms' inconsi/5t & optional ef=ts to 
mitigate ! rise 9 scams h fail$1 lead+  
to a consum] confid5ce crisis across    
digital f9ancial sy/ems4  #c4           
,prohibition on digital adv]tis+-relat$ 

fraud  7a7 ,9 g5]al ,x %all be unlawful 
= an onl9e plat=m to display a fraudul5t
 or deceptive comm]cial adv]tisem5t on  
su* plat=m if ! onl9e plat=m-- 7#a7     
accept$ paym5t to display su*           
adv]tisem5t2 &  7#b7 fail$ to take      
reasonable /eps 7z describ$ 9 subsection
 7b77 to prev5t ! fraudul5t or deceptive
 comm]cial adv]tisem5t f be+ made       
available4  7b7 ,additional requirem5ts 
= onl9e plat=ms  7#a7 ,requir$ proc$ures
 ,an onl9e plat=m t accepts paym5t1 or  
any o!r =m ( comp5sation1 to display an 
adv]tisem5t %all e/abli% & implem5t     
proc$ures to require ! foll[+3 7,a7     
,proc$ures to v]ify ! id5tity ( ea*     
adv]tis] prior to ! placem5t ( a paid   
adv]tisem5t1 includ+-- 7i7 v]ification (
 ! legal "n & physical location ( !     
adv]tis]2  7ii7 v]ification ( a valid & 
curr5t gov]nm5t-issu$ id5tification ( ! 
adv]tis]1 or1 9 ! case ( a bus9ess      
entity1 docum5tation e/abli%+ ! legal   
exi/5ce ( ! entity & ! relation ( !     
pur*as] to ! entity2  7iii7 collection (

 contact in=mation = ! adv]tis]         
suffici5t to all[ foll[ up by ! onl9e   
plat=m or ! ,commission2 &  7iv7        
reasonable measures to prev5t           
circumv5tion ( su* v]ification          
requirem5ts ?r\gh ! use ( any false1    
/ol51 or syn!tic id5tity4  7,b7 ,an     
active imp]sonation detection &         
mitigation program4  7,c7 ,automat$ &   
manual fraudul5t & deceptive comm]cial  
adv]tisem5t detection sy/ems4  7,d7 ,a  
cle> & conspicu\s tool = us]s to report 
suspect$ fraudul5t or deceptive         
comm]cial adv]tisem5ts4  7#b7           
,inve/igation ( fraudul5t or deceptive  
comm]cial adv]tisem5ts  7,a7 ,9 g5]al   
,if a p]son 7includ+ a gov]nm5t entity7 
reports a fraudul5t or deceptive        
comm]cial adv]tisem5t or ! detection    
sy/em ( an onl9e plat=m id5tifies a     
fraudul5t or deceptive comm]cial        
adv]tisem5t1 ! onl9e plat=m %all-- 7i7 n
 lat] ?an #gb h\rs aft] ! submission (  
su* report or receiv+ su* id5tification1
 conduct an inve/igation ( su*          

adv]tisem5t2 &  7ii7 n lat] ?an #bd h\rs
 aft] conclud+ ! inve/igation1 if       
applicable1 notify ! p]son ( ! outcome (
 su* inve/igation4  7,b7 ,removal  7i7  
,aft] inve/igation ,if1 aft] conduct+ an
 inve/igation "u subp>agraph 7,a71 an   
onl9e plat=m det]m9es t an adv]tisem5t  
violates ! requirem5ts ( ?is ,act1 su*  
onl9e plat=m %all1 n lat] ?an #bd h\rs  
aft] mak+ su* det]m9ation1 remove !     
adv]tisem5t f ! plat=m4  7ii7 ,dur+     
inve/igation ,no?+ 9 ?is subp>agraph    
%all preclude an onl9e plat=m f remov+  
an adv]tisem5t prior to ! conclusion (  
an inve/igation "u subp>agraph 7,a71 z  
det]m9$ appropriate by ! onl9e plat=m4  
7#c7 ,presum$ compliance  7,a7 ,9 g5]al 
,= purposes ( subsection 7a71 an onl9e  
plat=m %all be presum$ to h tak5        
reasonable /eps to prev5t a fraudul5t or
 deceptive comm]cial adv]tisem5t f be+  
made available if ! onl9e plat=m-- 7i7  
submits to ! ,commission a fraudul5t &  
deceptive comm]cial adv]tisem5t         
detection program t incorporates !      

proc$ures describ$ 9 p>agraph 7#a71 & ! 
,commission approves su* program2 &     
7ii7 demon/rates compliance )1 & active 
en=cem5t (1 ! program describ$ 9 clause 
7i71 includ+ by demon/rat+ t ! onl9e    
plat=m provides adequate res\rces = !   
program4  7,b7 ,rule ( con/ruction ,no?+
 9 ?is p>agraph %all be con/ru$ to      
create a presumption ( compliance 9 any 
individual en=cem5t action 9 :i* !      
,commission det]m9es or e/abli%es t !   
onl9e plat=m did n comply ) its         
fraudul5t & deceptive comm]cial         
adv]tisem5t detection program4  7c7     
,regulations  7#a7 ,9 g5]al ,n lat] ?an 
#a ye> aft] ! date ( enactm5t ( ?is     
section1 ! ,commission %all promulgate  
regulations 9 accordance ) section #eec 
( title #e1 ,unit$ ,/ates ,code1 to     
implem5t ?is section4  7#b7 ,updates ,! 
,commission %all review ! regulations   
promulgat$ "u p>agraph 7#a7 on an annual
 basis & revise su* regulations z       
appropriate4  7d7 ,en=cem5t by !        
,commission  7#a7 ,unfair or deceptive  

acts or practices ,a violation ( ?is    
,act or a regulation promulgat$ "u ?is  
,act %all be treat$ z a violation ( a   
rule def9+ an unfair or deceptive act or
 practice prescrib$ "u section          
#ah7;a77#a77;,b7 ( ! ,f$]al ,trade      
,commission ,act 7#ae ,u4,s4,c4         
#eg;a7a77#a77;,b774  7#b7 ,p[]s ( !     
,commission  7,a7 ,9 g5]al ,!           
,commission %all en=ce ?is ,act & any   
regulation promulgat$ "u ?is ,act 9 !   
same mann]1 by ! same means1 & ) ! same 
jurisdiction1 p[]s1 & duties z ?\gh all 
applicable t]ms & provisions ( ! ,f$]al 
,trade ,commission ,act 7#ae ,u4,s4,c4  
#da et seq47 7 incorporat$ into & made a
 "p ( ?is ,act4  7,b7 ,privileges &     
immunities ,any p]son :o violates ?is   
,act or any regulation promulgat$ "u ?is
 ,act %all be subject to ! p5alties &   
entitl$ to ! privileges & immunities    
provid$ 9 ! ,f$]al ,trade ,commission   
,act 7#ae ,u4,s4,c4 #da et seq474  7,c7 
,au?ority pres]v$ ,no?+ 9 ?is ,act %all 
be con/ru$ to limit ! au?ority ( !      

,commission "u any o!r provision ( law4 
7e7 ,en=cem5t by ,/ates  7#a7           
,au?orization ,9 any case 9 :i* !       
attorney g5]al ( a ,/ate has reason to  
believe t an int]e/ ( ! resid5ts ( !    
,/ate has be5 or is ?reat5$ or adv]sely 
affect$ by ! engagem5t ( any p]son 9 an 
act or practice t violates subsection   
7a7 or 7b71 ! attorney g5]al ( ! ,/ate  
may1 z p>5s patriae1 br+ a civil action 
on behalf ( ! resid5ts ( ! ,/ate 9 a    
di/rict c\rt ( ! ,unit$ ,/ates (        
appropriate jurisdiction to-- 7,a7 enjo9
 su* act or practice2  7,b7 en=ce       
compliance ) subsection 7a7 or 7b72     
7,c7 obta9 damages1 re/itution1 or o!r  
comp5sation on behalf ( resid5ts ( !    
,/ate2 or  7,d7 obta9 su* o!r relief z !
 c\rt may consid] to be appropriate4    
7#b7 ,rights ( ! ,commission  7,a7      
,notice to ! ,commission  7i7 ,9 g5]al  
,except z provid$ 9 clause 7iii71 be=e  
initiat+ a civil action "u p>agraph     
7#a71 ! attorney g5]al ( a ,/ate %all   
notify ! ,commission 9 writ+ t !        

attorney g5]al int5ds to br+ su* civil  
action4  7ii7 ,cont5ts ,! notification  
requir$ by clause 7i7 %all include a    
copy ( ! compla9t to be fil$ to initiate
 ! civil action4  7iii7 ,exception ,if x
 is n feasible = ! attorney g5]al ( a   
,/ate to provide ! notification requir$ 
by clause 7i7 be=e initiat+ a civil     
action "u p>agraph 7#a71 ! attorney     
g5]al %all notify ! ,commission         
imm$iately ^u in/itut+ ! civil action4  
7,b7 ,int]v5tion by ! ,commission ,^u   
receiv+ ! notice requir$ by subp>agraph 
7,a77i71 ! ,commission may int]v5e 9 !  
civil action &1 ^u int]v5+-- 7i7 be he>d
 on all matt]s aris+ 9 ! civil action2 &
  7ii7 file petitions = appeal ( a      
decision 9 ! civil action4  7#c7        
,inve/igatory p[]s ,no?+ 9 ?is          
subsection may be con/ru$ to prev5t !   
attorney g5]al ( a ,/ate f ex]cis+ !    
p[]s conf]r$ on ! attorney g5]al by !   
laws ( ! ,/ate to conduct inve/igations1
 to adm9i/] oa?s or affirmations1 or to 
compel ! att5dance ( witnesses or !     

production ( docum5t>y or o!r evid5ce4  
7#d7 ,preemptive action by ! ,commission
 ,if ! ,commission has in/itut$ a civil 
action = a violation ( subsection 7a7 or
 7b71 no ,/ate (fic] may br+ an action  
"u p>agraph 7#a7 dur+ ! p5d5cy ( t      
action aga9/ any def5dant nam$ 9 !      
compla9t ( ! ,commission = any violation
 ( subsection 7a7 or 7b7 alleg$ 9 !     
compla9t4  7#e7 ,v5ue2 s]vice ( process 
7,a7 ,v5ue ,any action br\ght "u        
p>agraph 7#a7 may be br\ght 9 ! di/rict 
c\rt ( ! ,unit$ ,/ates t meets          
applicable requirem5ts relat+ to v5ue "u
 section #acia ( title #bh1 ,unit$      
,/ates ,code4  7,b7 ,s]vice ( process ,9
 an action br\ght "u p>agraph 7#a71     
process may be s]v$ 9 any di/rict 9 :i* 
! def5dant-- 7i7 is an inhabitant2 or   
7ii7 may be f\nd4  7f7 ,private "r (    
action  7#a7 ,9 g5]al ,a p]son :o has   
be5 injur$ by ano!r p]son 9 violation ( 
subsection 7a7 or 7b7 may br+ a civil   
action aga9/ su* p]son 9 an appropriate 
di/rict c\rt ( ! ,unit$ ,/ates-- 7,a7   

seek+ injunctive relief2  7,b7 subject  
to p>agraph 7#b71 to obta9 actual       
damages2 &  7,c7 to obta91 = ea*        
violation1 any o!r re/itution1 p5alties1
 & o!r legal or equitable relief z !    
c\rt may deem j & prop]4  7#b7 ,willful 
or kn[+ violations ,if ! c\rt f9ds t !  
def5dant act$ willfully or kn[+ly 9     
committ+ a violation describ$ 9 p>agraph
 7#a71 ! c\rt may1 9 its discretion1    
increase ! am\nt ( ! aw>d to an am\nt   
equal to n m ?an #c times ! am\nt       
available "u p>agraph 7#a77;,b74  7#c7  
,co/s & attorney's fees ,! c\rt %all    
aw>d to a prevail+ pla9tiff 9 an action 
"u ?is subsection ! litigation co/s (   
su* action & reasonable attorney's fees1
 z det]m9$ by ! c\rt4  7#d7 ,limitation 
,an action may be comm5c$ "u ?is        
subsection n lat] ?an #e ye>s aft] !    
date on :i* ! p]son fir/ discov]$ or _h 
a reasonable opportunity to discov] !   
violation4  7#e7 ,nonexclusive rem$y    
,br++ a civil action "u ?is subsection  
%all be 9 addition to any o!r rem$y     

available to ! p]son br++ su* civil     
action4  7g7 ,relation%ip to o!r laws   
7#a7 ,effect ( o!r laws  7,a7           
,application ( section #bcj7;c77#a7     
,section #bcj7;c77#a7 ( !               
,communications ,act ( #aicd 7#dg       
,u4,s4,c4 #bcj7;c77#a77 %all n apply to 
any violation ( ?is section4  7,b7      
,application ( section #bcj7;c77#b7     
,no?+ 9 ?is ,act %all be con/ru$ to     
limit or affect ! civil liability       
protections "u section #bcj7;c77#b7 ( ! 
,communications ,act ( #aicd 7#dg       
,u4,s4,c4 #bcj7;c77#b774  7#b7 ,effect  
on ,/ate laws ,no?+ 9 ?is section or any
 regulation promulgat$ "u ?is section   
%all preempt or o!rwise affect any ,/ate
 or local law4  7#c7 ,sev]ability ,if   
any provision ( ?is section1 or !       
application !re( to any p]son or        
circum/ance1 is held invalid1 ! rema9d] 
( ?is section & ! application ( su*     
provision to o!r p]sons n simil>ly      
situat$ or to o!r circum/ances %all n be
 affect$ by ! invalidation4  #d4        

,regulatory report on onl9e scams &     
pot5tial = additional rulemak+  7a7     
,report requir$ ,n lat] ?an #i mon?s    
aft] ! date ( enactm5t ( ?is section1 ! 
,commission1 9 consultation ) o!r ,f$]al
 ag5cies1 %all submit to ! ,committee on
 ,bank+1 ,h\s+1 & ,urban ,affairs ( !   
,s5ate & ! ,committee on ,f9ancial      
,s]vices ( ! ,h\se ( ,repres5tatives a  
report assess+ :e!r additional /atutory 
au?ority is ne$$ to prev5t !            
prolif]ation ( onl9e scams involv+      
f9ancial transactions4  7b7 ,cont5ts ,! 
report requir$ "u subsection 7a7 %all   
include-- 7#a7 an assessm5t ( any       
regulatory gaps t all[ onl9e scams      
involv+ fraudul5t adv]tisem5ts or       
digital paym5t fraud to p]si/2  7#b7 an 
analysis ( :e!r improv$ in=mation-%>+   
me*anisms betwe5 onl9e plat=ms1 f9ancial
 in/itutions1 & regulators c\ld r$uce   
consum] losses2 &  7#c7 recomm5dations =
 su* legislation & adm9i/rative action  
requir$ to /r5g!n ov]sight ( onl9e      
plat=ms or int]m$i>ies facilitat+       

scam-relat$ paym5ts4  #e4 ,def9itions ,=
 purposes ( ?is ,act3 7#a7 ,commission  
,! t]m ,commission means ! ,f$]al ,trade
 ,commission4  7#b7 ,deceptive ,! t]m   
deceptive-- 7,a7 has ! mean+ giv5 ! t]m 
9 section #e ( ! ,f$]al ,trade          
,commission ,act 7#ae ,u4,s4,c4 #de72   
7,b7 %all be int]pret$ consi/5t ) any   
guidance ( ! ,commission or prec$5t (   
,f$]al c\rts apply+ su* section2 &  7,c7
 = purposes ( ?is ,act1 is limit$ to    
mat]ial misrepres5tations1 omissions1 or
 practices t are likely to cause        
f9ancial h>m to a consum]4  7#c7 ,onl9e 
plat=m ,! t]m onl9e plat=m means any    
public-fac+ website1 onl9e s]vice1 onl9e
 application1 or mobile application t   
pr$om9antly provides a community =um =  
us]-g5]at$ cont5t1 su* z %>+ videos1    
images1 games1 audio files1 or o!r      
cont5t1 includ+ a social m$ia s]vice1   
social network1 or virtual reality      
environm5t4